Zara India profit up 70 per cent

Zara’s net profit surged more than 70 per cent in India in 2017-18. Spain-based Inditex, is the owner of Zara. Inditex operates in India through two joint ventures with Trent, one for Zara and another for the bridge-to-luxury label Massimo Dutti. Zara and Massimo Dutti collectively saw 20 per cent revenue growth in India last year. Zara has been a success in India since its arrival in the country in 2010. There are 20 Zara outlets in India.

The other joint venture that operates three Massimo Dutti stores reported revenue of Rs 45.75 crores for 2017-18 up from Rs 30 crores a year ago. Zara's growth is flagging because of heightened competition, which is forcing the company to lower the price of clothes and footwear and to put more apparel on sale. Growth in online sales is also chipping away at profitability, because it is more expensive to ship internet orders.

Inditex’s gross profit margin is expected to bottom out this year as currency headwinds ease. The crucial profitability metric has fallen somewhat in recent years.

The latest Spring/Summer mule collection from Brune is designed especially for extra comfort in summers. “The assortment offers great variety of buckle mules from single to double monk in leather... Read more

The Indian fashion industry is shifting from western brands to Indian designer and indigenous brands and clothing. This transformation is happening largely due to the income shift and the penetration... Read more

The Indian e-commerce industry is expected to reach $4.88 trillion by 2020. Experts outline some of the trends that will dominate the sector in 2019:
Retailers go phygital
Many retailers are going... Read more

Exposed to latest fashion trends on the internet, consumers from small cities are demanding latest cuts and designs from apparel makers. In order to cater to their tastes, value-fashion brands... Read more